Banks feel the pressure from bond markets

DUBLIN REPORT: Iseq: 2,694.24 (+16.42) Settlement Date: November 5thDUBLIN'S ISEQ finished up 0.6 per cent yesterday in line with European markets which all ended the session in the black as markets looked ahead with anticipation to the US as the Federal Reserve began its two-day meeting to decide its strategy for economic recovery.

In Dublin CRH led the way, adding 1.4 per cent or 17.5 cent to close at €12.65, boosted by positive data from the US which showed that construction spending rose unexpectedly in September.

Other construction-related stocks failed to perform as well. Insulation provider Kingspan lost 1 per cent to €5.90, while Grafton shed 0.6 per cent to close at €3.08.

Irish banking stocks continued to feel the pressure from events in the bond markets. Bank of Ireland was under pressure for most of the day. Having traded down as low as 49.4 cent at one stage it regained ground somewhat, closing at 50 cent, a loss of just under 4 per cent.

AIB fared slightly better, though it shed 1.5 per cent to finish at €0.335. Similarly, Irish Life Permanent lost 4 cent or 2.7 per cent to €1.46.

Airlines rallied somewhat from the previous session when Ryanair’s half-year results failed to meet analysts’ guidance. Yesterday Ryanair regained that ground, adding just under 1 per cent to €4.01.

Aer Lingus also climbed, gaining 3.6 per cent to €1.15.

Elsewhere, exploration firm Providence Resources saw higher than usual volumes after a positive update on its drilling off the Dublin coast. It added 33 per cent, or 80 cent, rising to €3.20

Packaging company Smurfit Kappa continued its positive run of late, adding 2.4 per cent to close at €7.99.

Meanwhile, drinks company C&C also saw upward movement, adding 1.5 per cent to finish the day at €3.33.